Asia Fuel Oil-VLSFO dips; SE Asia refiners offer more supply
SINGAPORE, Sept 18 (Reuters) -Spot premiums for very low sulphur fuel oil (VLSFO) eased on Wednesday, while the market eyed higher October supplies offered by Southeast Asian refiners.
Benchmarks for low sulphur and high sulphur fuel oil (HSFO) have shown signs of easing in recent sessions due to expectations of supply recovery into the fourth quarter.
Cash premium for VLSFO dipped below $20 a metric ton to cargo quotes on Wednesday, while cracks for October eased day-on-day to premiums of around $11.30 a barrel, based on LSEG's data.
Regional supplies in Asia are expected to increase in October, according to shipping data and trade sources.
Indonesia's Pertamina offered more V-1250 fuel for October, including two 100,000-barrel cargoes loading from Dumai and three 200,000-barrel cargoes loading from Balikpapan. The tender closes on Wednesday.
The refiner had offered more fuel oil volumes for October loading in total, compared to what it sold in September, showed tender records. FUEL/TENDA
Separately, Thailand's PTT also offered more fuel oil for October via a tender that closes on Wednesday.
This included three 18,000-ton HSFO cargoes for loading from Sriracha and one 35,000-ton LSFO cargo from Map Ta Phut. The number of HSFO parcels rose compared to one cargo a month typically.
FUJAIRAH DATA
- Fujairah heavy fuel inventories FUJHD04 eased 3.7% to 9.66 million barrels (1.52 million tons) in the week to Oct. 16, based on the latest FOIZ data published by S&P Global Commodity Insights. FUJAIRAH/
- Bunker sales at Fujairah rose to a five-month high in August, totalling 656,034 cubic metres (about 650,000 metric tons).
OTHER NEWS
- Oil fell on Wednesday after an industry report showed increasing U.S. crude and fuel inventories, offsetting rising tension in the Middle East and the potentially bullish impact of a U.S. interest rate cut. O/R
- Russia may hold off oil export cuts for its western ports in October or even increase loadings, despite the scheduled rise of available primary oil refining capacity at local oil plants which enables Moscow to boost crude runs, market sources said.
- Venezuela's Amuay refinery, the country's largest, is almost completely offline following a power outage last week, four sources familiar with the matter told Reuters this week.
- The Biden administration will seek up to 6 million barrels of oil for the Strategic Petroleum Reserve, a source familiar with the issue said, a purchase that if completed will match its largest yet in the replenishment of the stash after a historic sale in 2022.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: One trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 549.93 | -4.34 | 554.27 | MFO05-SIN |
Diff - 0.5% VLSFO | 19.92 | -0.83 | 20.75 | MFO05-SIN-DIF |
Cargo - 180cst | 432.66 | 1.94 | 430.72 | FO180-SIN |
Diff - 180cst | 15.56 | 0.51 | 15.05 | FO180-SIN-DIF |
Cargo - 380cst | 422.25 | -0.01 | 422.26 | FO380-SIN |
Diff - 380cst | 17.08 | -0.67 | 17.75 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 12.00 | -1.00 | 13.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 22.00 | -1.00 | 23.00 |
For a list of derivatives prices, including margins, please double click the RICs below. | |
Brent M1 | BRENTSGMc1 |
180cst M1 | FO180SGSWMc1 |
180cst M1/M2 | FO180SGSDMc1 |
180cst M2 | FO180SGSWMc2 |
Visco M1 | FOVISSGDFMc1 |
Visco M2 | FOVISSGDFMc2 |
380cst M1 | FO380SGSWMc1 |
380cst M1/M2 | FO380SGSDMc1 |
380cst M2 | FO380SGSWMc2 |
Cracks 180-Dubai M1 | FO180SGCKMc1 |
Cracks 180-Dubai M2 | FO180SGCKMc2 |
East-West M1 | FOSGEWMc1 |
East-West M2 | FOSGEWMc2 |
Barges M1 | HFOFARAAMc1 |
Barges M1/M2 | HFOFARAASMc1 |
Barges M2 | HFOFARAAMc2 |
Crack Barges-Brent M1 | HFOFARAACMc1 |
Crack Barges-Brent M2 | HFOFARAACMc2 |
Reporting by Jeslyn Lerh; Editing by Vijay Kishore
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